ECON 133chapter 3-4review
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- Nathanjoel
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1 How Much Does the Economy Produce? The Production Function
2) In the production function Y = AF(K, N), A is , K is , and N is
.
A) total factor productivity; the capital stock; the number of workers employed
B) total factor productivity; investment; the number of workers employed
C) the productivity of labor; the capital stock; the size of the labor force
D) the productivity of labor; investment; the size of the labor force
11) If the marginal product of capital doesn't change as the amount of capital increases, a figure showing the relationship between output and capital
A) is a straight line with constant upward slope.
B) is a straight line with a slope of zero.
C) is a vertical line.
D) slopes upward with a slope that declines as the amount of capital increases.
13) Suppose the economy's production function is Y = A. Suppose K = 200, N
= 2000, and A = 1. Calculate the marginal product of capital. A) 1.0
B) 1.5
C) 2.0
D) 2.5
14) The fact that the production function relating output to capital becomes flatter as we move from left to right means that
A) the marginal product of labor is positive.
B) the marginal product of capital is positive.
C) there is diminishing marginal productivity of labor.
D) there is diminishing marginal productivity of capital.
15) Because of diminishing marginal productivity
A) the labor supply curve is not vertical.
B) nominal wages are sticky in a downward direction.
C) the labor demand curve is negatively sloped.
D) households save only a small share of their income.
16) The marginal product of labor
A) is measured by the slope of the production function relating capital to employment.
B) is larger when the labor supply is relatively larger.
C) is smaller when the labor supply is relatively smaller.
D) decreases as the number of workers already employed increases.(because there is dimishing return , more labor less change)
18) An adverse supply shock would
A) shift the production function up and decrease marginal products at every level of employment.
B) shift the production function down and decrease marginal products at every level
[Solved] ECON 133chapter 3-4review
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- Submitted On 21 Oct, 2021 11:09:34
- Nathanjoel
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ECON 133chapter 3-4review
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